It has been 39 years since the global stock market was shaken by the 1987 "Black Monday." At that time, Donald Trump, who was a real estate developer, claimed he sold all his stocks just before the crash.
On October 19, 1987, the Dow Jones Industrial Average plummeted by 508 points (22.6%) in a single day, marking the largest daily decline in U.S. stock market history, a record that still stands.
In an interview with The Wall Street Journal published the day after Black Monday, Trump stated, "I sold all my stocks in the last month," adding, "The timing was no different than with the Grand Hyatt."
This remark referred to his successful acquisition and redevelopment of the former Commodore Hotel into the renowned Grand Hyatt, which yielded significant profits.
Trump also expressed a negative outlook on the stock market, predicting further declines due to numerous issues facing the U.S. economy. In reality, it took over a year for the New York stock market to recover from the losses incurred on Black Monday.
While not publicly detailed, it is known that Trump's assets were primarily in real estate, with a smaller portion in stock investments. He gained fame as a businessman through real estate developments like the Grand Hyatt Hotel and Trump Tower in Manhattan.
However, when he ran for president in 2015, some investment returns were disclosed in documents submitted to the Securities and Exchange Commission (SEC). According to SEC records, Trump held between 40 and 45 stocks at that time, reportedly earning a profit of $27 million with high short-term returns.
Black Monday resulted in massive losses for investors. The Dow had risen approximately 44% from early 1987 until the end of August, but a sharp sell-off occurred in October. One factor that exacerbated the selling pressure was the "portfolio insurance" strategy, which automatically sold futures when stock prices fell.
At that time, the Federal Reserve indicated its readiness to provide liquidity to the financial markets, taking steps to stabilize the market. Subsequently, a trading halt system known as a "circuit breaker" was implemented to prevent drastic declines in the stock market.
* This article has been translated by AI.
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